Central Information Commission
Selvam vs Ut Of Puducherry on 15 May, 2026
CIC/UTPON/A/2025/103346
के य सूचना आयोग
Central Information Commission
बाबा गंगनाथ माग,मु नरका
Baba Gangnath Marg, Munirka
नई द ल , New Delhi - 110067
वतीय अपील सं या / Second Appeal No. CIC/UTPON/A/2025/103346
Selvam ... अपीलकता/Appellant
VERSUS
बनाम
CPIO: Puducherry State
Health Mission (Govt. of ... तवाद गण/Respondents
Puducherry), Puducherry
Relevant dates emerging from the appeal:
RTI : 08.10.2024 FA : 15.11.2024 SA : 21.01.2025
CPIO : 21.11.2024 FAO : Not on record Hearing : 28.04.2026
Date of Decision: 15.05.2026
CORAM:
Hon'ble Commissioner
P R Ramesh
ORDER
1. The Appellant filed an RTI application dated 08.10.2024 seeking information on the following points:
1. Details of Powers, Time period of the Committees namely 1. Procurement Committee, 2. Executive Committee, 3. Governing Body which has been formed on 27.11.2018 for procurement of medicine and medical equipment under Pondicherry State Health Society (PSHS) @ Pondicherry State Health Mission (PSHM), kindly furnish copies and relevant documents.Page 1 of 10
CIC/UTPON/A/2025/103346
2. Details of officers/employees, powers, work nature, approval limits and as per the administrative delegation power for the period from 2018-19 to 2019-
20. Constituted in the 1. Procurement Committee, 2. Executive Committee 3. Governing Body which has been formed on 27.11.2018 for procurement of medicine and medical equipments under Pondicherry State Health Society (PSHS) @Pondicherry State Health Mission (PSHM), kindly furnish copies and relevant documents.
3. Details of officers/employees available in the E- Procurement committee along with their name, their nature of work and their role in the committee for the period from 2018-19 to 2019-20, kindly furnish copies and relevant documents.
4. Details of applicants participated in e tender in the RMNCH + A Scheme for Pondicherry State Health Society (PSHS) @ Pondicherry State Health Mission for the state of Pondicherry for the year 2018-19 to 2019-20 for Medicine and Consumables at Value of Rs. 2,41,63,034.00. Kindly furnish copies and relevant documents.
5. Details of applicants rejected in e- tender in the RMNCH + A Scheme for Pondicherry State Health Society (PSHS) @ Pondicherry State Health Mission for the state of Pondicherry for the year 2018-19 to 2019-20 for Medicine and Consumables at Value of Rs. 2,41,63,034.00. Kindly furnish copies and relevant documents..etc.
2. The CPIO replied vide letter dated 21.11.2024 and the same is reproduced as under
:-
"With reference to your applications Form-I dated 08.10.2024 under the RTI Act, 2005, the information sought for by the applicant unable to disclose under section 8(1)(i) "Records of deliberation on file, till final decision has been taken", section Page 2 of 10 CIC/UTPON/A/2025/103346 8(1)(h) "Cases which are under investigation", 11(1) "Technical and Financial aspect of the Bid" and 8(1)(j) at this juncture. Therefore, documents called for cannot be supplied at this juncture."
3. Dissatisfied with the response received from the CPIO, the Appellant filed a First Appeal dated 15.11.2024 alleging that the information provided was incomplete, false and misleading. FAA vide order dated 19.12.2024 upheld the reply of CPIO.
4. Aggrieved and dissatisfied, the Appellant approached the Commission with the instant Second Appeal dated 21.01.2025 Facts emerging in Course of Hearing:
Appellant: Not present Respondent: Dr. S. Sevvel. Mission Director and Dr. Govindrajan, Consultant/Mission Director- participated in the hearing through video-conference.
5. The Respondent while defending their case inter alia submitted that the matter relates to large-scale irregularities in the procurement of medicines, surgical items, and mannequin equipment by the National Health Mission/Public Health System, Puducherry during the financial years 2018-19 and 2019-20 involving procurements exceeding ₹2.41 crore. It was alleged that the entire tender and procurement process was handled irregularly by Mr. S. Natarajan, Pharmacist (contractual employee), without mandatory financial concurrence, approval of the competent authority, or adherence to procurement rules. Supply orders were issued directly to dealers, many procurements were made on single quotations, expired quotations were used, purchases exceeded delegated financial powers and approved budgets, and several medicines supplied did not conform to approved specifications, manufacturers, or quality standards. Large quantities of medicines procured without proper planning expired unused, causing a loss of over ₹45 lakh, while mannequin items worth over ₹21 lakh were found unusable and not as per specifications. The inquiry further revealed missing records, improper storage, conflict of interest involving supplier firms linked to the concerned Pharmacist, and possible Page 3 of 10 CIC/UTPON/A/2025/103346 collusion with firms supplying unauthorized and substandard products, ultimately causing substantial loss to the Government exchequer. He further added that based on these findings, disciplinary and criminal actions were initiated, including termination of Mr. S. Natarajan, blacklisting of supplier firms, registration of FIR by Vigilance & Anti- Corruption Unit, investigation by Vigilance authorities and CBI, and arrest of several accused officials and suppliers who were later released on bail. The respondent authority stated that since the matter is under active investigation and prosecution before courts, disclosure of procurement records and related documents sought under the RTI Act by the appellant and other connected persons could impede investigation and prosecution. Accordingly, information was denied under Sections 8(1)(h), 8(1)(i), 8(1)(j), and Section 11(1) of the RTI Act on grounds relating to ongoing investigation, cabinet records, personal information, and confidential technical/financial bid details. The Respondent further contended that similar RTI matters had already been considered earlier and therefore prayed for dismissal of the appeal before this Commission. A written submission dated 26.03.2026 in this regard has been received from Dr. S. Sevvel, FAA and same has been taken on record for perusal. The relevant extract whereof is as under:
"..1. The tender for procurement of medicines and surgical items was floated during the financial year 2018-19 and the rates were finalized in the financial year 2019-20. Based on the finalized rates, a Rate Contract was issued vide Rate Contract dated 07.06.2019. Subsequently, a proposal was submitted on the same day for procurement of medicines and surgical items amounting to ₹2,41,63,034/- for use under various RMNCH+A activities.
2. It has been observed that the tender was processed by Mr. S. Natarajan, Pharmacist (Contractual employee of NHM/PSHS), Puducherry. Further, the said Pharmacist Mr. S. Natarajan has submitted the proposal for procurement of medicines & consumable items without routing through the Finance/Accounts section and without obtaining the concurrence of the State Finance Manager, which is a mandatory requirement under the prescribed Page 4 of 10 CIC/UTPON/A/2025/103346 financial rules. Further, as per NHM guidelines, procurement exceeding 50 lakhs requires approval from the competent higher authority i.e. Secretary (Health)-cum-Chairman (Executive Committee-PSHS); however, in this case, the proposal was restricted to the level of the Director (Health) and was not forwarded to the Secretary (Health) for approval, despite the total value exceeding *2 crore.
3. Based on such irregular approval, supply orders were issued directly to dealer firms without routing through the selected bidder firms. It is also noted that most of the procurements were made on a single-quotation basis, thereby violating the principles of transparency and competitive bidding as required under the General Financial Rules, 2017.
4. Further scrutiny revealed several discrepancies in the procurement process, including incorrect calculation of the total proposal amount and arithmetic errors in the records, which could have resulted in financial misstatements. It was also observed that certain procurements exceeded the delegated financial powers of the approving authority. Additionally, purchases were made based on expired quotations without obtaining necessary approvals for extension of validity, thereby rendering such procurements invalid.
5. In several instances, supply orders were issued contrary to policy decisions and approved procurement norms. For example, sanitary napkins were procured from private dealers despite a decision to source them from government undertakings. Similarly, purchases were made in excess of approved budget allocations, resulting in non-settlement of bills due to insufficient funds.
6. Significant discrepancies were also observed in the supply of medicines. In many cases, the products supplied did not match the approved specifications, manufacturer, strength, or packaging as per the rate contract. Substandard, Page 5 of 10 CIC/UTPON/A/2025/103346 repacked, or unauthorized manufacturing products were supplied in place of approved items. Additionally, GST calculations in invoices were found to be incorrect and manually altered.
7. It was further observed that procurement was carried out for the entire annual requirement in a single instance without considering actual consumption patterns, stock availability, or phased delivery requirements. As a result, large quantities of medicines were received within a short period, often from the same batch with identical expiry dates. Due to reduced consumption, particularly during the COVID-19 pandemic, a substantial quantity of medicines remained unused and eventually expired, leading to a financial loss of ₹45,56,560.80 to the Government.
8. The procurement of mannequin items also suffered from serious irregularities. Items worth ₹21,79,194/- were procured but were neither installed nor verified at the time of payment. Upon inspection, it was found that most items did not conform to approved specifications, were incomplete, or were of inferior quality, rendering them unusable and resulting in a total loss to the Government.
9. Further investigation revealed a conflict of interest, as one of the supplier firm M/s. Sairam agency, Puducherry is found to be associated with the family member of the concerned Pharmacist Mr. S. Natarajan. Additionally, the supplier firms involved were interconnected and allegedly supplied substandard and unauthorized products. Manufacturers of the approved products denied involvement in the supply, further indicating irregularities and possible fraudulent practices.
10. It was also observed that important procurement documents, including bid documents, were missing and were not handed over by the concerned Pharmacist Mr. S. Natarajan. The medicines were improperly stored by the Page 6 of 10 CIC/UTPON/A/2025/103346 said pharmacist and not distributed effectively, leading to further wastage and expiry.
11. Based on these findings, it has been concluded that there were gross violations of procurement procedures, financial rules, and store management practices being carried out by the Pharmacist Mr. S. Natarajan. The losses incurred were primarily due to negligence, improper planning, non- compliance with rules, and possible collusion of Mr. S. Natarajan with supplier firms. In conclusion, the entire procurement process was found to be irregular, non-transparent, and in violation of established government rules by Mr. S. Natarajan (Pharmacist/Terminated), resulting in significant financial loss to the Government Exchequer.
12. Accordingly, disciplinary action was taken, including termination of the concerned Pharmacist Mr. S. Natarajan by the Health (Secretary), Puducherry on 19.01.2021, blacklisting of the supplier firms M/s. Sairam Agency, Puducherry & M/s. Sri Batmajothi Enterprises, Puducherry for 3 years with effect from 17.02.2021, and initiation of criminal proceedings. Investigations have been undertaken by Vigilance authorities, Central Bureau of Investigation (CBI), and the matter has also been subjected to Audit and Legal scrutiny.
13. Whereas, the Officer on Special Duty (OSD/DHFWS), Puducherry has filed a FIR complaint in Vigilance & Anti-corruption Unit (VAC), Puducherry on 08.09.2023 against the pharmacist Mr. S. Natarajan (terminated from PSHM office) and Other officials of NHM and the supplier firm/s those involved in corruptioris and violations in supply of medicines and consumables to PSHS office. Based on the FIR, VAC Police Unit, Puducherry is taking necessary investigations and legal actions against Mr. S. Natarajan and other officials those involved in corruptions & criminal activities and supply of un-approved medicine products by the supplier firms. The criminal Page 7 of 10 CIC/UTPON/A/2025/103346 case is currently being heard before the High Court in Chennai. In connection with this case, Pharmacist Mr. S. Natarajan, two former Directors (Health/DHFWS), a former Deputy Director (FW & MCH), as well as the Proprietor and Partners of M/s. Sairam Agency and M/s. Sri Batmajothi Enterprises, have been arrested and now all of the accused persons have since been released on bail.
14. In this circumstances, Mr. S. Natarajan (Pharmacist/Terminated) and the former Directors are requesting the purchase related informations and copy of records & documents through the RTI Act. But, this office has denied to provide the informations, records and documents as the case was filed against him vide the FIR dt. 08.09.2023 and the same may affect the investigation of case. Therefore, Mr. S. Natarajan and others are trying to get the information, record and documents through RTI Act with the help of other source of persons.
Hence, it is informed that the information sought for by the appellant Thiru. Selvam. R (Advocate) on procurement of medicines for the year 2018-19 & 2019-20 unable to disclose under following sections of the Right to Information Act, 2005, Section 8 (1) (h) information which would impede the process of investigation or apprehension or prosecution of offenders.
Section 8 (1) (i) cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers, till final decision has been taken.
Section 8 (1) (j) information which relates to personal information the disclosure of which has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual.
Section 11 (1) technical and financial aspect of the Bid Page 8 of 10 CIC/UTPON/A/2025/103346 This exemption applies to information that is related to an ongoing investigation or a case that is in the process of being investigated or prosecuted. Further, I am to inform that the related RTI matters have already discussed with Hon'ble Information Commissioner and they agreed the same, hence the appeal has been disposed.
In view of the above facts and circumstances, it is humbly prayed that the Hon'ble Commission may be pleased to dismiss the present appeal..."
Decision:
6. The Commission after adverting to the facts and circumstances of the case, and perusal of records, observed that the Appellant has sought information regarding procurement of medicines, surgical items, equipment by the National Health Mission/Public Health System, Puducherry in addition to that, documents connected to the procedures laid down (details of purchase committee, purchase storage condition, and the reports maintained etc.) for the period from 2018-2019 to 2019-2020. It is noted that an appropriate response as per the provisions of the RTI Act, 2005 has been provided by the Respondent. Furthermore, written submission filed by the Respondent is comprehensive and self-explanatory.
7. In view of the detailed submissions of the Respondent demonstrating that the matter is under active investigation and criminal prosecution and that disclosure of the requested records may impede the process of investigation and prosecution of offenders, the Commission finds the exemption claimed under Section 8(1)(h) of the RTI Act to be justified and same has been duly explained, warranting no intervention at this stage. The appeal is disposed of accordingly.
Copy of the decision be provided free of cost to the parties.
Page 9 of 10CIC/UTPON/A/2025/103346 Sd/-
(P R Ramesh) (पी. आर. रमेश) Information Commissioner (सूचना आयु त) Authenticated true copy Vivek Agarwal (िववेक अ वाल) Dy. Registrar (उप पंजीयक) 011-26107048 Addresses of the parties:
1 The CPIO Puducherry State Health Mission (Govt. of Puducherry), Health Directorate Complex, 2nd Floor, Victor Simonel Street, Puducherry-605001.
2 Selvam Page 10 of 10 Recomendation(s) to PA under section 25(5) of the RTI Act, 2005:-
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